Trading Forecast Gold

Gold closed higher due to short covering on Friday as it rebounds off support marked by the 20-day moving average crossing. The mid-range close sets the stage for a steady to higher opening on Monday. Stochastics and the RSI are bearish signalling that sideways to lower prices are possible near-term. However, closes above the 10-day moving average crossing have tempered the near-term bearish outlook. Closes below the 20-day moving average crossing are needed to confirm that a short-term top has been posted.